RE: Contracting where you used to work

["Tim Lewis" <Writer -dot- lewis -at- att -dot- net>]

I too was laid off and now contract where I used to work. I like it a lot
better  than being an employee now. At first it was difficult because I was
not included in company events and the circles of discussions that I used to
be in. But I got over it, especially after I started collecting the checks.
I noticed that, over time, people treated me differently. They treat me with
more respect and take my advice more seriously. Now I am the outside
"expert."
Eric's response is good advice. So is Andrew Plato's. As far as IRS issues,
you must set yourself up as a business and do not have your former employer
as your only client. There are other issues to consider but that is another
discussion. Elna also offeres good advice about this.


Tim Lewis
Lewis Communications
mailto:writer -dot- lewis -at- att -dot- net


Subject: Re: FWD: Contracting where you used to work
From: "Eric J. Ray" <ejray -at- raycomm -dot- com>
Date: Tue, 25 Sep 2001 06:39:53 -0600 (MDT)
X-Message-Number: 10

On Tue, 25 Sep 2001 anonfwd -at- raycomm -dot- com wrote:
> I was laid off recently from a startup company that is experiencing the
> usual pains. My boss has said she would like to have me back on a
> contract basis, once they actually get some customers. I'm keeping an open
> mind to this possibility, while continuing to search in a lifeless market.
>
> Has anyone had this experience of going back to work on contract for a
> company where you were previously full-time? How does it change your
> relationships with your (remaining) coworkers and your supervisors? How
> do you determine a fair rate? Any pitfalls to watch out for?

I've done this, although after voluntarily leaving, not
after a layoff.

Assuming you had good relationships before, there's no
reason they shouldn't continue.

You should figure out your previous hourly rate
(divide annual salary by 2000, approximately) and
double it, unless you want to give yourself a raise,
in which case you should double it and then some.
You as a contractor cost the company _far_ less
than you as an employee, and they're still coming
out ahead with you as a contractor at 2x hourly
employee rate.

Eric
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Subject: Re: FWD: Contracting where you used to work
From: Elna Tymes <Etymes -at- LTS -dot- com>
Date: Tue, 25 Sep 2001 15:46:04 -0700
X-Message-Number: 56

<snip>
If you want to go back to work as a consultant for the company where you
were
previously an employee, be sure you have a contract stipulating that you are
a
contractor, and as such you are responsible to the terms of the contract and
are specifically NOT an employee of the company for which you'll be doing
the
work.  Also make sure that the contract has specifics like deliverables,
milestones, when you get paid, etc.

How does it change your relationships with your remaining coworkers and
supervisors?  It doesn't have to change your relationship with your them
except
for the fact that you're now governed by the terms of your contract, not
your
previous employer/employee relationship.  You may find, however, that your
coworkers tend to regard you with an 'us/them' attitude, since in some
places
contractors are viewed as outsiders.  You may need to be sure your
supervisors
understand the terms of your contract, since they may not be able (under
contract terms) to give you orders any more.

As for rates, that varies widely with geographic area and prevailing rates
at
the time.  Here in Silicon Valley, senior writers were able to get in excess
of
$85/hr a year or so ago; nowadays they're lucky if they can get $65/hr, IF
they
can find anything at all.

Elna Tymes
Los Trancos Systems





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